Many Utah residents likely look forward to the time in their lives when they are able to retire from their chosen profession. These individuals have probably been saving for retirement for some time and hope that those funds will allow them to live comfortably after they stop working. However, if parties go through divorce, their retirement savings could face substantial impacts.
It was recently reported that 24 percent of individuals in the baby boomer generation who participated in a study indicated that ending their marriages had a negative impact on their retirement. Additionally, 23 percent of those participants indicated that they will have to continue working after their initially desired retirement age. Because of these outcomes, parties facing divorce at any age may wish to consider how it may impact their retirement.
In most cases, retirement funds are up for division during property division proceedings in divorce. This means that people could stand to lose out on a considerable portion of their savings depending on the outcomes of the divorce settlement. Due to state law, the division process will determine the most equitable outcomes.
If Utah residents have concerns regarding their retirement funds and divorce, they may wish to find out how to potentially protect those savings. Creating a prenuptial agreement could help address these concerns, but if such a document was not created, parties may still have options for working toward the terms they desire. Enlisting the assistance of knowledgeable attorneys could help interested individuals better understand their options and possible avenues for effectively handling property division.
Source: fool.com, “Can Divorce Destroy Your Retirement?“, Wendy Connick, Oct. 13, 2017